Satellite Communications
Jonathan worked for Satellite Communications for twenty years. In the time that he worked there, he learned a lot about the company and how it operated. The company met its sales and revenue goals every year. However, most of the employees had similar educational and cultural backgrounds. He believed that the company could do much better if it cultivated an environment that promoted many different ideas. Additionally, Satellite Communications was mostly focused on how much revenue it earned in a given year. Jonathan felt that the most important goal should be to satisfy customers. He believed financial success would result from focusing on customers.
After a lot of consideration, Jonathan decided to open his own business called Universal Communications and hire employees that reflected a more diverse customer bas
-Mary is interested in investing in the stock market, but having studied the Great Depression in school, she is afraid she could lose all of her money. She reads through the finance pages of the newspaper and sees that unemployment has dropped to the lowest level it has been in the past ten years, new businesses are opening, housing sales are up because interest rates are level, and the national debt is decreasing. If the economy is her only concern about buying stock, should she buy stock?
A)The level of unemployment, the rise in new business starts, the increase in housing sales, and the decrease in national debt indicate that the economy is growing so it would be a good time to buy stock.
B)In spite of all of the positive indicators, it is never a good time to buy stock.
C)The stock market works independent of unemployment, business starts, housing sales, and the level of the national debt so these things will not influence the rise or fall of the market.
D)Mary should not base her decision to buy stock on the factors indicated, she should base it solely on the consumer price index.

Question

Satellite Communications
Jonathan worked for Satellite Communications for twenty years. In the time that he worked there, he learned a lot about the company and how it operated. The company met its sales and revenue goals every year. However, most of the employees had similar educational and cultural backgrounds. He believed that the company could do much better if it cultivated an environment that promoted many different ideas. Additionally, Satellite Communications was mostly focused on how much revenue it earned in a given year. Jonathan felt that the most important goal should be to satisfy customers. He believed financial success would result from focusing on customers.
After a lot of consideration, Jonathan decided to open his own business called Universal Communications and hire employees that reflected a more diverse customer bas
-​Mary is interested in investing in the stock market, but having studied the Great Depression in school, she is afraid she could lose all of her money. She reads through the finance pages of the newspaper and sees that unemployment has dropped to the lowest level it has been in the past ten years, new businesses are opening, housing sales are up because interest rates are level, and the national debt is decreasing. If the economy is her only concern about buying stock, should she buy stock?
A)​The level of unemployment, the rise in new business starts, the increase in housing sales, and the decrease in national debt indicate that the economy is growing so it would be a good time to buy stock.
B)​In spite of all of the positive indicators, it is never a good time to buy stock.
C)​The stock market works independent of unemployment, business starts, housing sales, and the level of the national debt so these things will not influence the rise or fall of the market.
D)​Mary should not base her decision to buy stock on the factors indicated, she should base it solely on the consumer price index.

Quizplus · Accepted Answer

The decrease in unemployment, rise in new business starts, increase in housing sales, and decrease in national debt all point to a growing economy, which generally means a good time to buy stock. The consumer price index (CPI) is an important indicator to consider, but it should not be the sole factor in Mary's decision.

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